Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20680
Authors: 
Schiff, Maurice
Wang, Yanling
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1384
Abstract: 
Based on static analysis, a number of studies argue that forming a RTA is more likely to raise welfare if member countries are ?natural trading partners,? while other studies claim the opposite. This paper considers the argument from a dynamic viewpoint by examining the impact of trade with Japan, North America and the EU on technology diffusion and TFP in Korea, Mexico and Poland. Using industry-level data, we show that i) technology diffusion and productivity gains tend to be regional: Korea (Mexico) (Poland) benefits mainly from trade with Japan (North America) (the EU); and ii) the dynamic version of the ?natural trading partners? hypothesis seems to hold for Korea and Mexico though not necessarily for Poland.
Subjects: 
North-South technology diffusion
productivity
regional integration
natural trading partners
Korea
Mexico
Poland
JEL: 
O39
F15
F13
F02
F43
Document Type: 
Working Paper

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